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The real estate market in Canada is constantly changing and adapting to changing demands and trends. After nearly a decade of steady expansion across the country, some Canadian markets are starting to chill and decrease. This means that intelligent investors must pay close attention to current trends and housing market prices as well as previous market movements to identify the most profitable investment possibilities across the Great White North.
So, while the housing market prices are rising and falling, if you want to ensure you still qualify for a mortgage, click the link below to book a free strategy call with our team at LendCity today.
Taking a look at housing market prices
Beginning in 2018, a nationwide cooling of the real estate market was caused by foreign buyer taxes, rising mortgage interest rates, and more strict mortgage qualification standards. Depending on local economic and provincial political considerations, different country regions are recovering to varying degrees from the recession.
While housing market prices in Western Canada have reached and fallen from record highs, new interest in key Eastern Canadian cities is fueling further growth in historically discounted markets, particularly in Québec.
The market landscape in Vancouver, Victoria, and the Fraser Valley is reformed due to a recession in Western Canada, particularly in British Columbia. Vancouver, one of the hottest markets in the country for the past decade, has recently had the lowest relative demand. While this may provide issues for owners looking to sell existing assets for a profit, it also allows prospective investors to get into the famously difficult and rewarding real estate investment market in the Vancouver Metro Area.
Canada’s evolving real estate market provides investors new options to achieve financial independence and construct a solid real estate portfolio. Real estate investors will gain the knowledge they need to make informed, high-value investment decisions by thoroughly studying the national market and regional sub-markets, and neighborhood micro-markets.
The ascendance of the East
While Western Canadian markets slow and housing market prices struggle to recover, many traditionally undervalued Eastern Canadian cities in Ontario, Quebec, and the Maritimes continue to grow.
Home and real estate values across the country dropped in February 2019. Some markets are regaining ground more quickly than others. Ottawa and the National Capital Region are located in Canada’s capital city (NCR), have experienced tremendous growth in other regions of Southern Ontario, but the Greater Toronto Area (GTA) has remained static.
The province of La Belle sees significant growth due to improved economic and political stability in Québec. The National Question has mainly been put to rest, for the time being, thanks to Premier François Legault’s Coalition Avenir Québec (CAQ) leadership and Parliament’s 2006 acknowledgment of Québec as a nation inside a divided Canada. As a result, investor confidence and economic development are increasing across the province.
On the other hand, many market analysts say that Montréal’s real estate market is now overheated and is poised for a correction shortly. On the other side, Québec City and the Capitale-Nationale administrative region are becoming a more attractive market for real estate investors.
Halifax, Nova Scotia, which had a surplus of real estate listings between 2013 and 2018, is one of the country’s largest markets, with 23% of listings selling for more than the asking price in May 2021.
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Where should you invest money in 2022?
This year’s top markets in the United States may not be the best places to invest. Rather than buying in a hot market with high housing market prices on average, it may be more beneficial to purchase real estate is an excellent market that has the potential to heat up again soon, such as Vancouver and the Fraser Valley.
As a result, here are a few of the most promising real estate markets to explore for 2022:
Windsor, Ontario is quickly becoming one of the country’s most desirable real estate markets. This international port city is quickly becoming one of Southern Ontario’s most desirable destinations to live and purchase after decades of underdevelopment and disinvestment. In June 2021, the average home price in Windsor was $565,000, with a five-year rent rise of 11.14 percent.
Civil officials and business professionals seeking more inexpensive housing options in the National Capital Region (NCR) are discovering Gatineau, Québec, has affordable housing market prices, is close to the city heart of Ottawa, and has a thriving culture. In June 2021, the average cost of a home in Gatineau was $558,896, which is relatively cheap.
Québec City, Québec
The capital of Québec’s government, nestled at the foot of the Laurentian Mountains, is attracting real estate investors with its colonial elegance and breathtaking environment. The city has seen a 6.97 percent increase in rent over the last five years and has relatively modest home purchase costs, averaging $310,000 in June 2021.
Halifax, Nova Scotia
At 16.9%, this beautiful, historic Nova Scotia city has one of the country’s most significant five-year rent increases. However, the average cost of buying a property in Halifax is still relatively low, at $365,692 in June 2021.
Once overlooked by real estate investors, Kitchener-Cambridge-Waterloo is now one of Canada’s most exciting and dynamic markets. The Kitchener-Cambridge-Waterloo area, home to several highly skilled industrial and technical firms, has easy access to Toronto and the United States via Niagara Falls and the Detroit-Windsor tunnel and bridges. Rents in the neighborhood have risen by a stunning 24.64 percent in the last five years, which is unsurprising. The average price of a property in the area in June 2021 was $795,115.
Consider your goals when deciding which market best meets your needs and aspirations as an investment. If you want to keep an asset and rent it out for a long time, investing in a historically hot market experiencing a short-term cooling-off might be better.
If you want to buy a short-term investment property and then sell it for a profit, though, you’ll be better off buying in a rapidly rising real estate market like Gatineau or Halifax.
Intelligent investors understand how to balance macro- and micro-market data with their requirements and financial goals. Learning how to effectively analyze the national real estate market will enable you to make profitable and successful local investment decisions.
Getting a Mortgage With Today’s Housing Market Prices
If you want to learn how to finance your investments regardless of the state of the current housing market prices, click the link below for a free strategy call with our team at LendCity. Then, we will help you find the best available mortgage to cover today’s housing market prices.